ECB's Enria wants euro zone banks out of Russia faster | Inquirer Business

ECB’s Enria wants euro zone banks out of Russia faster

/ 05:14 PM June 27, 2023

ECB's Andrea Enria

Andrea Enria, chairperson of the European Banking Authority, speaks at Reuters Summit interview in London, Britain, Sept. 25, 2017.  REUTERS/Afolabi Sotunde/File photo

The European Central Bank wants lenders to speed up their exit from Russia given the increased reputational, legal and financial risk of doing business there, supervisory chief Andrea Enria said on Tuesday.

Though Europe’s top supervisor has for months said he hoped European financial bodies would cut ties with their Russian assets, the matter has taken on new significance after Saturday’s 24-hour mutiny by the Wagner militia underscored the country’s political fragility.

ADVERTISEMENT

In a letter to members of the European Parliament, Enria said his unit has “urged these banks to speed up their downsizing and exit strategies by adopting clear roadmaps and by regularly reporting to their management bodies and to ECB Banking Supervision on the execution of these plans”.

FEATURED STORIES

Austria’s Raiffeisen Bank International, one of the euro zone banks with the biggest ties to Russia, has been stepping up moves to hand its Russian arm to shareholders amid mounting pressure to do so, Reuters reported last month.

Its CEO Johann Strobl has said that he was working “at full steam” on a solution.

In a report this week on the European banks most exposed to Russia in the wake of the weekend’s events, JPMorgan pointed in addition to RBI to Hungary’s OTP Group and Italy’s UniCredit as having relatively large Russian businesses among European banks.

RELATED STORIES:

Deutsche Bank tells investors some of their Russian shares are missing

Putin signs decree taking over Russian assets of two foreign firms

ADVERTISEMENT

Russia keeps investors from ‘unfriendly’ nations frozen out

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: banks, ECB, euro zone, Russia

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.